Iconic guitar maker Gibson files for bankruptcy protection

May 02, 2018, 04:25
Iconic guitar maker Gibson files for bankruptcy protection

After Chuck Berry died, his beloved cherry-red Gibson guitar was bolted to the inside of his coffin lid. Slash swears by them.

The move is set to hit Adelaide based distributor Powermove who had the local rights to sell both Philips and Pioneer products supplied by Gibson brands. That division will be liquidated, according to Bloomberg, with Gibson refocusing its efforts on its core musical instruments business. A big slab of sunshine is needed for the iconic guitar brand.

Gibson said sales of its electric guitars grew 10.5 percent to $122 million in the 12 months through January from a year earlier.

That being said, the Gibson name might be their most valuable asset, which Juszkiewicz, who own's a sizable share of the company also realizes.

This form of bankruptcy has been used by such well-known brands as GM and Chrysler, and often means that a company is profitable but unable to make the interest payments on the debt is has accumulated.

"Gibson will emerge from Chapter 11 with working capital financing, materially less debt, and a leaner and stronger musical instruments-focused platform", the company said in a press release.

Variety notes that Gibson has filed motions that, pending court approval, will allow the company to operate its business as usual throughout the restructuring process. King's signature guitar, "Lucille", was a Gibson. The later big-bodied Gibson jazz guitars have been in the arsenal of many great players since then, such as Wes Montgomery and Joe Pass.

And the folk-revival of the 1950s and 1960s wouldn't have sounded quite so mellow without battalions of steel-string Gibson acoustic guitars among the Martins and Guilds. And Jimmy Page, the legendary guitarist for blues rockers Led Zeppelin, was and remains a longtime Gibson loyalist.

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